Agricultural Loan Evaluation with Discriminant Analysis*

R. Bruce Johnson and Albert R. Hagan

Journal of Agricultural and Applied Economics, 1973, vol. 5, issue 2, 57-62

Abstract: Agricultural lending institutions are faced with a perpetual task of periodically evaluating personal and financial attributes of their borrowers. This examination is necessary in order to determine the present quality of the loans and to assess the current financial position of each borrower. Moreover, analysis of each borrower's financial performance establishes a basis for extending, limiting or withdrawing the present line of credit and for determining the amount and kind of supervision needed.

Date: 1973
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